Economic preferences and attitudes of the unemployed: Are natives and second generation migrants alike?

Amelie F. Constant (DIW DC, Washington, DC, USA, IZA, Bonn, Germany, and George Washington University, Washington, DC, USA)
Annabelle Krause (IZA, Bonn, Germany)
Ulf Rinne (IZA, Bonn, Germany)
Klaus F. Zimmermann (IZA, Bonn, Germany, and University of Bonn, Bonn, Germany)

International Journal of Manpower

ISSN: 0143-7720

Publication date: 18 October 2011

Abstract

Purpose

The aim of this paper is to study the economic effects of risk attitudes, time preferences, trust and reciprocity and to compare natives and second generation migrants.

Design/methodology/approach

This paper is based on the IZA Evaluation Dataset, a recently collected survey of a representative inflow sample into unemployment in Germany. The data include a large number of migrant‐specific variables as well as information about economic preferences and attitudes. This allows an assessment of whether and how unemployed second generation migrants differ from unemployed natives in terms of economic preferences and attitudes.

Findings

Differences are found between the two groups mainly in terms of risk attitudes and positive reciprocity. Second generation migrants have a significantly higher willingness to take risks and they are less likely to have a low amount of positive reciprocity when compared to natives. It was also found that these differences matter in terms of economic outcomes, and more specifically in terms of the employment probability about two months after unemployment entry.

Research limitations/implications

The findings offer interesting perspectives, e.g. with regard to the design and targeting of active labor market policy. It may be reasonable to specifically focus on less risk averse individuals with measures such as job search requirements and monitoring.

Originality/value

This paper provides novel and direct evidence on the relationship between economic preferences, attitudes and labor market reintegration of natives and second generation migrants.

Keywords

Citation

Constant, A.F., Krause, A., Rinne, U. and Zimmermann, K.F. (2011), "Economic preferences and attitudes of the unemployed: Are natives and second generation migrants alike?", International Journal of Manpower, Vol. 32 No. 7, pp. 825-851. https://doi.org/10.1108/01437721111174776

Publisher

:

Emerald Group Publishing Limited

Copyright © 2011, Emerald Group Publishing Limited

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